A mock Georgian building rented by the State in North Frederick Street, Dublin 1, goes for sale today at an asking price of €4.2 million.

At that valuation it would provide a return of 16 per cent – one of the highest yields offered for an office investment in the city in recent years.

Frederick Court, a second generation office block extending to 1,974 sq m (21,255sq ft), is currently rented at €702,000 per annum – the equivalent of €311.20 per sq m (€29 per sq ft).

The only snag for a purchaser is that the lease to the Office of Public Works has only three years to run.

Well located

However, a new owner could be expected to negotiate a new lease with the State agency in return for an upgrading of the building.

Recent reports suggest the OPW is running short of office accommodation in the city. Frederick Court is currently occupied by a number of bodies linked to the Department of Education.

Average floor plates are in the region of 345sq m (3,713sq ft), while the fifth floor penthouse extends to 232sq m (2,497sq ft). There are 25 on- site car-parking spaces.

Frederick Court is well located in the city centre only a few minutes’ walk from O’Connell Street.